The KLCI ended 7.55 points lower on Wednesday, closing at 1353.03 points. As shown on the chart above, the KLCI remains in the trading of the 1368 resistance and the 1332 support. Therefore, the direction for the KLCI remains unclear. Meanwhile, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

As indicated by B, total market volume on Wednesday fell 17%, and failed to break above the 40-day VMA level. This suggests that the market was again lightly participated, and without sufficient inflow of capital into the market, the KLCI is likely to stay in its consolidation.

On Wednesday, both the %K and %D line of the Stochastic are staying in the 50% level, which is the short term neutral region. This suggests that the market movement is at neutral. Provided that the Stochastic is staying around the 50% level, the market direction for the short term is likely to be sideways. (Stuy C)

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